U.S. Energy Corp. Provides Operational Update
RIVERTON, Wyo., July 17, 2013 (GLOBE NEWSWIRE) -- U.S. Energy Corp.
(Nasdaq:USEG) (the "Company"), today provided an operational update.
South Texas - Buda Limestone formation
The Beeler #2H well located in the Booth-Tortuga acreage block in Dimmit
County, Texas produced approximately 45,000 gross BOE during the first 60 days
of production, or an average of 750 gross BOE/D. The Company participates in
approximately 10,140 gross acres which are prospective for the Buda formation
and has an approximate 30% working interest and an approximate 22.8% net
revenue interest in the acreage.
Two additional wells in the Booth-Tortuga acreage block targeting the Buda
Limestone formation are now scheduled to be drilled in succession.The Beeler
#3H well is currently scheduled to spud on July 20, 2013.The Beeler #4H well
is currently scheduled to spud in late August 2013.
Williston Basin, North Dakota – Bakken and Three Forks formations
*The Caper 1-15-22H (Bakken Formation) well was completed with 35 fracture
stimulation stages mid-June with an early peak 24-hour production rate of
2,063 BOE/D.The well produced 16,137 BOE during the first 11 days of
production or an average of 1,543 BOE/D.The Company has an approximate
1.30% working interest ("WI") and a 1.02% net revenue interest ("NRI") in
*The Rogers 1-12 #1TFH (Three Forks Formation) well was completed with 35
fracture stimulation stages in mid-June with an early peak 24-hour
production rate of 825 BOE/D on a 42/64 choke.The initial production rate
consisted of approximately 696 barrels of oil and 776 MCF of natural gas.
The Company has an approximate 9.36% WI and a 7.30% NRI in the well.
*The Dobias 152-103-32-29-11TFH (Three Forks Formation) well was completed
with 35 fracture stimulation stages in the first week in July with an
early peak 24-hour production rate of 1,326 BOE/D on a 38/64 choke.The
initial production rate consisted of approximately 1,179 barrels of oil
and 884 MCF of natural gas. The Company has an approximate 1.91% WI and a
1.49% NRI in the well.
*The Dobias 152-103-32-29-#1H (Bakken Formation) well was completed with 35
fracture stimulation stages in the second week of July with an early peak
24-hour production rate of 1,399 BOE/D on a 52/64 choke.The initial
production rate consisted of approximately 1,203 barrels of oil and 1,176
MCF of natural gas. The Company has an approximate 1.91% WI and a 1.49%
NRI in the well.
Williston Basin Wells in Progress:
Well Name Operator Formation Working Net Revenue Status
Mongoose 1-8-5H Emerald Oil Bakken 0.29% 0.23% Producing - IP
Inc. rate TBA
Van Hook EOG Resources Bakken 0.36% 0.27% Producing - IP
126-2523H rate TBA
Van Hook EOG Resources Bakken 0.36% 0.27% Producing - IP
19-2523H rate TBA
Slugger 1-16-21H Emerald Oil Bakken 0.36% 0.28% Completing
Young 31-30 #1H Zavanna LLC Bakken 2.69% 2.13% Completing
State 36-1 #4TFH Statoil Three Forks 3.64% 2.88% Completing
Emerald Oil Drilled -
Talon 1-9-4H Inc. Bakken 0.27% 0.21% completion
Hovde 33-4 2TFH Statoil Three Forks 2.47% 1.95% completion
Excalibur Emerald Oil Bakken 0.82% 0.61% Drilling
Wayne Zumhof Oasis Scheduled to
Federal 5300 Petroleum Three Forks 4.33% 3.24% spud July 2013
Gene Zumhof Oasis Scheduled to
Federal 5300 Petroleum Three Forks 0.41% 0.31% spud July 2013
Hovde 33-4 #3TFH Statoil Three Forks 2.45% 1.94% spud August
Hovde 33-4 #4H Statoil Bakken 2.45% 1.94% spud August
Average: 1.61% 1.25%
Wilcox Sand formation
The Fender #1 well located in Anderson County, Texas was drilled in April,
2013. The operator is continuing to test the prospective zones which were
encountered while drilling for commercial viability. The Company has an
approximate 19.8% WI and 15.4% NRI in this project.
On March 5, 2013, the Company entered into a Purchase and Sale Agreement with
an undisclosed buyer to sell its Remington Village apartment complex located
in Gillette, Wyoming for $15.0 million.The transaction is now anticipated to
close on or before September 20, 2013, subject to due diligence and the
purchaser's ability to obtain an acceptable loan commitment for the proposed
acquisition of the property.There is no assurance that the transaction will
close at that time, on the expected terms or at all.
"We are pleased to report an active oil and gas development schedule at
mid-year 2013.We have multiple wells in development in the Williston Basin of
North Dakota and are looking forward to drilling the next two Buda Limestone
formation wells in succession in South Texas with Crimson," stated Keith
Larsen, CEO of U.S. Energy Corp. "If the next two Buda wells prove to have a
production profile similar to the Beeler #2H, we are confident that drilling
will continue in the near term," he added.
About U.S. Energy Corp.
U.S. Energy Corp. is a natural resource exploration and development company
with a primary focus on the exploration and development of its oil and gas
assets.The Company also owns the Mount Emmons molybdenum deposit located in
west central Colorado.The Company is headquartered in Riverton, Wyoming and
trades on the NASDAQ Capital Market under the symbol "USEG".
The U.S. Energy Corp. logo is available at
Disclosure Regarding Forward-Looking Statement
This news release includes statements which may constitute "forward-looking"
statements, usually containing the words "will," "anticipates," "believe,"
"estimate," "project," "expect," "target," "goal," or similar
expressions.Forward looking statements in this release relate to, among other
things, U.S. Energy's expected future production and capital expenditures and
projects, its drilling and fracing of wells with industry partners and
potential additional drilling opportunities, its ownership interests in those
wells, the oil and natural gas targets or goals for the wells, future capital
expenditures (including the availability of funds to make such expenditures)
and projects, future expenses, production, costs and sale transactions. There
is no assurance that any of the wells referenced in this press release will be
economic.Initial and current production results from a well are not
necessarily indicative of its longer-term performance.Future transactions may
not close on the terms we anticipate or at all.The forward-looking statements
are made pursuant to the safe harbor provision of the Private Securities
Litigation Reform Act of 1995.Forward-looking statements inherently involve
risks and uncertainties that could cause actual results to differ materially
from the forward-looking statements.Factors that would cause or contribute to
such differences include, but are not limited to, dry holes and other
unsuccessful development activities, higher than expected expenses or decline
rates from production wells, future trends in commodity and/or mineral prices,
the availability of capital, competitive factors, and other risks described in
the Company's filings with the SEC (including, without limitation, the Form
10-K for the year ended December 31, 2012 and the Form 10-Q for the quarter
ended March 31, 2013) all of which descriptions are incorporated herein by
reference.By making these forward-looking statements, the Company undertakes
no obligation to update these statements for revision or changes after the
date of this release.
CONTACT: Reggie Larsen
Director of Investor Relations
U.S. Energy Corp.
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